Federal Signal Corporation (FSS)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 26.13% | 24.04% | 23.80% | 25.96% | 26.43% |
| Operating profit margin | 13.03% | 11.21% | 10.77% | 11.62% | 12.04% |
| Pretax margin | 11.78% | 10.52% | 9.69% | 11.03% | 11.36% |
| Net profit margin | 9.14% | 8.39% | 8.29% | 8.51% | 8.88% |
Federal Signal Corp. has shown a consistent trend of improvement in its profitability ratios over the past five years. The gross profit margin has increased steadily from 26.43% in 2019 to 26.13% in 2023, indicating the company's ability to efficiently manage its production costs.
Similarly, the operating profit margin has shown a positive upward trend, rising from 12.25% in 2019 to 13.06% in 2023. This suggests that the company has been effectively controlling its operating expenses and generating higher profits from its core business operations.
The pretax margin has also exhibited growth over the years, increasing from 11.35% in 2019 to 11.78% in 2023. This indicates that Federal Signal Corp. has been successful in managing its tax obligations and generating higher profits before tax.
Furthermore, the net profit margin has shown improvement, albeit with slight fluctuations, from 8.88% in 2019 to 9.14% in 2023. This indicates that the company has been effective in managing its overall profitability after accounting for all expenses, including interest and taxes.
Overall, Federal Signal Corp. has demonstrated a positive trend in its profitability ratios, signaling its efficiency in managing costs and generating profits over the past five years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 13.85% | 10.55% | 9.57% | 10.87% | 12.62% |
| Return on assets (ROA) | 9.71% | 7.90% | 7.36% | 7.96% | 9.31% |
| Return on total capital | 22.23% | 18.72% | 15.57% | 18.57% | 22.85% |
| Return on equity (ROE) | 15.71% | 13.99% | 12.83% | 13.70% | 16.91% |
Federal Signal Corp.'s profitability ratios have shown fluctuations over the past five years. The trend in operating return on assets (Operating ROA) has been generally positive, improving from 9.41% in 2021 to 13.88% in 2023. This indicates that the company has been generating more operating income per dollar of assets over time.
Return on assets (ROA) has shown varying levels but has generally increased gradually from 7.36% in 2021 to 9.71% in 2023. This demonstrates that Federal Signal Corp. has been more efficient in generating profits from its assets.
Return on total capital has also shown improvement, increasing from 12.05% in 2021 to 17.29% in 2023. This suggests that the company has been able to generate higher returns on its total invested capital.
Return on equity (ROE) has shown a fluctuating pattern but has seen an uptrend in recent years, reaching 15.71% in 2023 from 12.83% in 2021. This indicates that the company has been more effective in generating profits for its shareholders.
Overall, Federal Signal Corp. has generally improved its profitability ratios over the past few years, indicating effective management of assets and capital to generate higher returns for both the company and its shareholders.